Singing Sweets Haus Business Plan

91
Singing Sweets’ Haus CHAPTER I COMPANY PROFILE A. Description Singing Sweets’ Haus is a start-up specialty bakery dedicated in bringing unforgettable sweet moments to customers who want to make dessert a unique experience. It will provide customers with a vast array of high quality baked goods and unique products that will change the customer’s perception of regular cakes and cupcakes. The products will have the taste, quality, and artistic designs that will provide customers with delectable products. Singing Sweets’ Haus is registered as a general partnership with six (6) partners who will be jointly and severally liable for the debts of the company with their entire property. The total capitalization of the business is P 1,500,000, which will be shared by the six (6) partners, all of whom will contribute, P250, 000 each. This amount will cover the funding of operating expenses as well as the purchasing of all the necessary materials and equipment to start the business. A Business Plan 6

description

Singing Sweets' Haus

Transcript of Singing Sweets Haus Business Plan

Page 1: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER I

COMPANY PROFILE

A. Description

Singing Sweets’ Haus is a start-up specialty bakery dedicated in bringing

unforgettable sweet moments to customers who want to make dessert a unique

experience. It will provide customers with a vast array of high quality baked

goods and unique products that will change the customer’s perception of regular

cakes and cupcakes. The products will have the taste, quality, and artistic

designs that will provide customers with delectable products.

Singing Sweets’ Haus is registered as a general partnership with six (6)

partners who will be jointly and severally liable for the debts of the company with

their entire property. The total capitalization of the business is P 1,500,000, which

will be shared by the six (6) partners, all of whom will contribute, P250, 000 each.

This amount will cover the funding of operating expenses as well as the

purchasing of all the necessary materials and equipment to start the business.

Singing Sweets’ Haus will specialize in creating and designing singing

cakes and cupcakes for various life events as well as everyday craving of

customers. The owners of the business will establish connections with many

suppliers whose services can be utilized to sustain the need of high-quality

ingredients. The prices will be affordable. Thus, customers may be able to save

the cost of buying the products. In addition, the company’s products and services

will give customers an unforgettable experience. The location of the business will

be accessible and convenient to the customers.

A Business Plan 6

Page 2: Singing Sweets Haus Business Plan

Singing Sweets’ HausB. Company Name

The company was named as Singing Sweets’ Haus. The phrase “Singing

Sweets’” corresponds to sweetness of cakes and cupcakes the people used to

love having when they are celebrating an occasion or coming up with surprises.

These cakes and cupcakes are placed inside a box containing an e-greeting.

Like the ones celebrants used to hear in an e-card, e-greeting usually sings to us

in the special moments (Birthdays, Graduation and etc. ) or speaks to us with

affection (Thank You, Sorry, I love You and etc.). Attached to the phrase Singing

Sweets’ is the word “Haus” which is deeply associated to the word home. The

company chose the word “Haus” instead of the usual spelling of “House“,

because they believe that constructing the word creatively would contribute to the

company’s marketing style that can attract more customers. Moreover, the

company wants to make people feel that once they choose its products and

services, they would feel special through personalized and homemade-like cakes

and cupcakes. As people would say, “There is no place like home”.

A Business Plan 7

Page 3: Singing Sweets Haus Business Plan

Singing Sweets’ HausC. Company Logo

Figure 1: Company Logo of Singing

Sweets’ Haus

Figure 1 is the logo of Singing Sweets’ Haus. The logo of the company is

the collaboration of a swan, a heart, a cupcake, a note, rays, and the word

“haus”. All of this are explained below:

Cupcake: This is the main product of the company. In this logo it

represents as a crown, which symbolize as influence and power. This cupcake of

the company will become the best cupcake ever had in the world of business.

This is the cupcake of dominance over the other.

Two Goose: The two gooses represent us, the persons who believe in

love. The two gooses represent mutuality. They are sharing their feelings,

thought and love, which is the main purpose of the company, is to share its

blessings and goodness.

Heart shape: The two gooses forming a heart shape represent the love

that the company shares. The company doesn’t only focus on increasing profit

but giving importance in sharing their love to the costumer. The company wants

to spread love to the people, and let them share it to the others.

A Business Plan 8

Page 4: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Pink rays: This represents as a pathway. This means that the company

wants to spread more and share more their blessings to the others. The

company is expecting that this company will last longer and would be the best

cupcake company in the business world. This company would be prosperous in

some way.

Note: The note represents the uniqueness of the company. This is the

only company that manufactures and sells cupcakes which sings and talks.

Music is loved by many people so is our company.

Goose-forming double S: This represents the company name initials,

which starts with the letter “s”.

Haus: This represents also the company name, Singing Sweets’ Haus.

This “haus” represents Home. The owners of the business consider the company

as a home because this company believes that love starts at home. By sharing

our love to them they could feel that they are important to the society.

A Business Plan 9

Page 5: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

D. Tagline

Figure 2: Tagline of Singing Sweets’ Haus

The tagline of the company tells about the main product of “Singing

Sweets’ Haus”. It is connected to the company’s name, because it tells about the

product that the company offers. The company assures that they make every

message sweet as a cupcake and they always bake fresh and delicious cupcake

for the customers.

E. Vision

Singing Sweets’ Haus is envisioned to be the premiere destination for

Cupcakes in the Philippines. We will strive for that by going that extra mile and

making people smile with the goody sweetness of Singing Sweets’ Haus through

constant improvement, and strict adherence to the highest standards of quality.

In the future, we intend to sustain our modern edge to be as customer-friendly as

possible and to provide the finest quality of taste to each product as the customer

envisioned to exceed their expectations regardless of what they can, and cannot

eat.

A Business Plan 10

Page 6: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

F. Mission

The mission is to provide a vast array of high quality baked goods in a

modern and creative way. Each customer that purchases one of our specialty

products contributes to the overall success of Singing Sweets’ Haus. In order to

achieve this, the company will undertake the following:

To provide unique products that will change our customer’s perception

of regular cakes and cupcakes. We love what we do; therefore, we work

each sweet cupcake in its unique and yummiest way that will surely

make customers have an unforgettable experience that will keep them

coming back for more;

To provide appreciation to customers for the opportunity to serve them

and provide happiness and joy through the art of food by giving them

the cupcakes that they deserve.

A Business Plan 11

Page 7: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

G. Core Values

S. W. E. E. T. S.Figure 3: Core Values of Singing Sweets’ Haus

Satisfying customers

Singing Sweets’ Haus aligns pricing with the perceived value of the

customers, provides products based on consumer’s wants and ensures

that customers will be happy with the product or service received.

Working with passion

Singing Sweets’ Haus staff individually works with passion. Tapping into

the power of passion in accomplishing what you want with yourself and

with your company, this energizes a group of people into greatness.

Establishing relationship

Building relationships both with co-workers and customers enable a long-

time commitment in work and in the target market. Singing Sweets’ Haus

would provide good relationship to customers by providing them a

hundred percent of staffs’ skills.

A Business Plan 12

Page 8: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Elevating authenticity

A pastry shop that is generating new idea for making creative products

for special occasions, uniqueness is what Singing Sweets’ Haus could

offer. It will provide customers a sweet taste that will open customer’s

sweet side.

Transforming imaginations into creations

Singing Sweets’ Haus wants its customers to know that with the shop,

imaginations can turn into creations.

Showcasing delicious food with creative thoughts

Singing Sweets’ Haus bakes cakes with best ingredients and presents it

in a creative way suitable in every occasion.

A Business Plan 13

Page 9: Singing Sweets Haus Business Plan

Singing Sweets’ HausH. Organizational Chart

Figure 4: Organizational Chart of Singing Sweets’ Haus

A Business Plan

Venizze Angela M. PabloPresident

Natasha Kim V. ConluHead of Operation

Management

Jenis C. VilanuevaHead of Financial

Management

Settie B. DerogonganHead of Marketing

Management

Joshua B. EnolvaHead of Maintenance

Management

Angelika B. ZafraHead of Human

Resource Management

14

Page 10: Singing Sweets Haus Business Plan

Singing Sweets’ HausFigure 4 shows the organizational chart of the business starting with the

president of the company, Miss Venizze, who will be responsible with all the

activities as well as the decision-making. On the other hand, there are five

managers who will work closely related with each other, namely, Natasha as the

operation manager, Miss Jenis as the financial manager, Miss Settie as the

marketing manager, Miss Angelika as the human resource manager, and Mr.

Joshua as the maintenance manager.

A Business Plan 15

Page 11: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER II

PRODUCTS AND SERVICES

A. Description

The proposed products of the Singing Sweets’ Haus are the singing cakes

and cupcakes. These cakes and cupcakes are placed inside the company’s

signature box containing an electronic greeting. This e-greeting contains the

personalized message for the customer’s recipient. Moreover, it is designed for

the customers to have the perfect present ready for their loved ones. It also

offers the sweetest panache of greeting their loved ones in the memorable dates

of their lives. Singing Sweets’ Haus products aid in providing the customers the

perfect gift for their loved ones, which the recipient could store and treasure for a

long time. In addition, the company began to establish a strong and good

relation contracts with its suppliers, to provide the best and sizable cost savings

for its customers.

B. Kinds of Products

The company will offer the following products:

Cakes: This will include chiffon, cheesecake and ice cream types

of cake. From the regular chocolate chiffon flavored cake, customers can

choose from the special cheesecake flavored such as mango, blueberry

and Oreo and also the signature rainbow, M&Ms, Kitkat, and Oreo

flavored cake. The choices from the type of cake and flavor depends on

the customer’s own preferences.

A Business Plan 16

Page 12: Singing Sweets Haus Business Plan

Singing Sweets’ HausCupcakes: This will include the Singing Sweets’ Haus regular

flavors; such as the red velvet, vanilla, mint, carrot cupcake and chocolate

(milk, white or dark). The specialty cheesecakes includes blueberry,

Oreo, cookies and cream, S’mores and M&Ms and the company’s

signature cupcake is the artisan rainbow ice cream cake. The customers

may add toppings if desired, including letter candies, sprinkles, chocolate

chips, chocolates which is available in the store.

Beverages: The customers could dine-in and purchase cake or

cupcakes to be eaten in the store. Thus, beverages are made available

including Singing Sweets’ Haus house blend milkshakes, fruit shakes, iced

tea and water.

Electronic Greeting/E-greeting: The customers’ take – out could

have an e-greeting or not. There are readily available e-greetings for

Birthdays, Anniversaries and in-coming popular holidays like Halloween,

Christmas, New Year, and etc. Moreover, sweet greetings like “I love you”,

“Congratulations” and many others are also available. The company’s

signature RYG or record your own greeting is done by the customers.

A Business Plan 17

Page 13: Singing Sweets Haus Business Plan

Singing Sweets’ HausC. Kinds of Services

The company will offer the following services:

Packing services: This includes the cutting of the recorded voice of

the customer/s.

Cupcake or Cake personalization: This includes the preparation of

the cupcake or cake. If the customers desired flavor or type of cake is not yet

available in the store for them to buy, they may ask the assistant or the

cashier in charge to have it made, which may require them to wait.

A Business Plan 18

Page 14: Singing Sweets Haus Business Plan

Singing Sweets’ HausCATEGORY FLAVOR SPECIAL FEATURE/S PRICE MERCHANT/S

“The

Regular”

The Chocolate

Meltdown

8 X 8

8X12

12X12

2 layered cakeRich chocolate chiffon

cake with fudgy Belgian

chocolate icing and

filling.

* Free 5 long colorful

candles and plastic

bread knife.

P 350.00

P 520.00

P 750.00

BNC

Ingredients

“The

Specialty”

Cheesecakes

Oreo

Mango

Blueberry

8 x 11 Round

Made with rich

camembert cheese

with hole in the middle

filled with sweets of the

given flavor

* Free 5 long colorful

candles and plastic

bread knife.

P 680.00

P 680.00

P 680.00

BNC

Ingredients

Slattery

“The

Signature”

Ice Cream

Cakes

Rainbow

(7 colorful

layers)

Kitkat

M&Ms

10 inch Round

Artisan ice cream cakes

crunch center, and

flavored soft serve.

* Free 5 long colorful

candles and plastic

bread knife.

P 750.00

P 750.00

P 750.00

BNC

Ingredients

Slattery

A Business Plan 19

Page 15: Singing Sweets Haus Business Plan

Singing Sweets’ HausTable 1: Singing Sweets’ Haus Cake Products

Table 1 shows the company’s cake products, which are divided into three

(3) categories: the regular, the specialty, and the signature cakes. Under the

regular is the chocolate chiffon flavored cake in different proportions. On the

other hand, the specialty cakes consist of cheesecakes while the signature cakes

consist of ice cream cakes. These categories are classified according to the type

of cake, which the company has used as the foundation to establish the set

prices.

A Business Plan 20

Page 16: Singing Sweets Haus Business Plan

Singing Sweets’ HausCATEGORY FLAVOR

SPECIAL

FEATURE/SPRICE MERCHANT/S

“The

Regular”

Red velvet

Vanilla

Mint

Carrot

cupcake

Chocolate

(milk, white

or dark)

Different colors, flavored

toppings and design with

cream cheese frosting

P 85.00

each

-BNC

Ingredients

-Slattery

-HB Ingredients

“The

Specialty”

Oreo

Cookies &

Cream

S’mores

Blueberry

M&Ms

Different colors, flavored

toppings and design with

cream cheese frosting

P 85.00

each

-BNC

Ingredients

-Slattery

“The

Signature”

Rainbow

Artisan ice cream

cupcake of seven

colorful layers and

cream cheese frosting  -

an impressive

showstopper

P 110.00

-BNC

Ingredients

-Slattery

-HB Ingredients

A Business Plan 21

Page 17: Singing Sweets Haus Business Plan

Singing Sweets’ HausTable 2: Singing Sweets’ Haus Cupcake Products

Table 2 shows the company’s cupcake products, which are divided into

three (3) categories: the regular, the specialty, and the signature cupcakes.

Under the regular is the chiffon flavored cupcake. On the other hand, the

specialty cakes consist of cupcakes, in a form of cheesecakes; while the

signature cupcake is the “Rainbow” cupcake molded into 4 colorful layers, which

could be in a form of the regular cupcake or ice cream cupcake. These

categories are classified according to the type of cupcake, which the company

has used as the foundation to establish the set prices.

A Business Plan 22

Page 18: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

TYPES DESCRIPTION FLAVOR PRICE MERCHANT

Mineral

WaterBeverage None Free Aqueous

Iced tea House blend

Red Iced Tea

(Regular)

(Bottomless)

P

35.00

P

40.00

Templar Food

Products

Milkshakes House blend

Madagascar Chocolate

Frozen Vanilla

Blended with milk and

ice cream with flavored

syrup topped with

whipped cream and

cherry

P

160.00

each

Templar Food

Products

Fruit

ShakesHouse blend

Mango

Strawberry Tofu

Banana

Made with Greek yogurt

and topped with cherry

P

110.00

each

The Sunshine’s

Fruit

Warehouse

Table 3: Singing Sweets’ Haus Beverages Products

A Business Plan 23

Page 19: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Table 3 shows the company’s beverage products, which are divided into

four (4) types: water, iced tea, milkshakes, and fruit shakes. Under these types

are various flavors with their corresponding prices based on the cost of the

ingredients used.

A Business Plan 24

Page 20: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

TYPES DESCRIPTION PRICE MERCHANT

Ready – made e-

greeting

The e-greeting available in

the store of the company.

+

P 30.00BRPboxshop

Record your own

greeting (RYG)

The e-greeting can come

from the customers own

voice recording that is

done during the purchase.

+

P 45.00BRPboxshop

Personalized

Written

Dedication

Dedication in Words

Dedication with Picture

(purchased with e-

greeting)

Dedication with Picture

(purchased without e –

greeting)

Free

Free

+

P 6.00

Picture or Dedication is

provided by the customers.

Dedication in Words

Cake

(Max. 30 words)

Cupcake

(Max. 15 words)

Dedication with Picture

Cake

(Max. of 3 ½ x 5)

Cupcake

(Max. of 2 x 3)

Table 4: Singing Sweets’ Haus Cake and Cupcake E-greeting

A Business Plan 25

Page 21: Singing Sweets Haus Business Plan

Singing Sweets’ Haus Packing and Personalization

Table 4 shows the company’s cake and cupcake e-greeting packing and

personalization which is divided into three (3) types: ready – made e-greeting,

record your own greeting (RYG), and personalized written dedication. Under the

ready- made e greeting, customers can choose from the available e-greeting sold

in the store. The record your own greeting refers to the like of the customers to

have their personal message to their loved ones through their own recorded

greeting. Moreover, the personalized dedication refers to the like of the

customers to have pictures placed on the packing of their cake or cupcake gift,

provided that it meets the picture size requirement of (Max. of 3 ½ x 5) for the

cake and (Max. of 2 x 3) for the cupcake.

A Business Plan 26

Page 22: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER III

MARKET ANALYSIS

A. Market Overview

Figure 5: Philippines Population (Year 2003-2015)

Figure 4 shows the population of the Philippines from 2003 to 2015.

According to Philippine Statistics Authority (PSA) this year’s summary of

projected population is a total of 102,965,300 and is expected to increase to

111,784,600 in a three (3) year projection (2015-2018) in an Average Annual

Exponential Growth Rate of 1.64.

A Business Plan 27

Page 23: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Table 5: Age/Sex of Population

in Metro Manila in a Five – Year projection (2015-2018)

Source: Philippine Statistics Authority - National Statistical Coordination Board Makati City, Philippines

Table 5 shows the currently recorded population in National Capital

Region, the potential market of the company, which is nearly 8.4 percent of the

total population in Philippines in Year 2015. With this number of potential buyers,

the company could expect a positive response on the demand of the Singing

Sweets’ products.

B. Market Description

The market area compromises the whole Metro Manila, particularly at the

Blue Bay Walk, Metropolitan Park EDSA Ext, and Pasay City. The company

believe that it will be able to yield a large market base as revealed from the total

number households and entire population. There will only be subtle conflicts on

the transportation because of the improved infrastructures and innovation of

technologies.

A Business Plan 28

Page 24: Singing Sweets Haus Business Plan

Singing Sweets’ HausC. Target Market

The company has recognized a key capacity and fullness on its launch

stage in the mainland of the Philippines, the Metro Manila, particularly the Pasay

City. The initial demographic assessment reveals that this area has massive

technological innovation and is the centre of industries and huge basin of schools

and work establishments enough for the company’s new innovations to make it

positively through the potential market.

Demographic Segmentation

Singing Sweets’ Haus identifies its target market based on the

demographic profile of the target market. The profile for customer consists

of the following geographic, demographic and behavioral factors:

Geographic

The company has no immediate geographic target. The only

constraint is that the majority of sales will be from within the Philippines

due to the importing/exporting tariff that do not make it cost effective

for an international order to be placed.

The total targeted population will be focusing on people in Metro

Manila since the company believe that it is the centre of industries. A

place where most income is expected to be high and would give an

immediate feedback on the product.

A Business Plan 29

Page 25: Singing Sweets Haus Business Plan

Singing Sweets’ HausDemographic

The product and services can be enjoyed by people who are 4 years

old and above.

The product and services cater both male and female in any status or

occupation.

Behavioral Factors

People who are very cognizant in quality time with their family

People who have no health risk/ issue in sugar level especially

Diabetes

People who are very affectionate and sensible in celebrating

occasions or coming up with surprises

People who love cakes and cupcakes

People who loves sweet, fresh and great ambiance in eating

The company believe that the products are ideal for the customers

coming from both male and female with the age of 4 years old and above,

without health risk/ issue in their sugar level. The company have chosen

such age for according to the Bureau of Food and Drugs (BFAD), people

ages 4 years old and above are already safe to eat chocolates, cupcakes,

cakes and other sweets without choking or expelling any health threats.

A Business Plan 30

Page 26: Singing Sweets Haus Business Plan

Singing Sweets’ HausD. Location

Customers could easily come across the business since the first vicinity of

the branch will be located at Blue Bay Walk, Metropolitan Park EDSA Ext, and

Pasay City.

This site has been chosen because of its accessibility and great

ambiance. Moreover, it is also near in one of the largest SM Malls, which could

contribute in bringing customers awareness in the store. Transportation nor

communication facilities will not be a problem as of the great quality of life, well-

constructed infrastructures, advanced technology innovations present in the site.

E. Competition

Based on the geographical positioning of the business, the management

found out that within the area there are businesses that offer similar product but it

only poses a low threat since those businesses offer almost the same product

and do not have singing cakes and cupcakes like the company have.

Furthermore, the management also found out that the same shops offer not only

ordinary flavors but also unique flavors of cakes and cupcakes. However, the

location of other shop is too far away from the site of the business. Thus, Singing

Sweets’ Haus do not see any major competitor in terms of the product we sell.

A Business Plan 31

Page 27: Singing Sweets Haus Business Plan

Singing Sweets’ HausF. Competitor’s Profile

Direct Competitors

Cupcakes By Sonja

Cupcakes by Sonja opened in

Serendra on September 8, 2006 as

the first bakeshop in Manila to

specialize exclusively in cupcakes,

and the first in the country to

introduce traditional Southern red velvet cupcakes with the Red Velvet

Vixen—a delicious concoction made with Belgian cocoa and topped with

cream cheese icing. They have five (5) branches located at Power Plant

Mall, Trinoma, Serendra, Glorieta 2, and SM Megamall.

Vanilla Cupcake Bakery

Vanilla cupcake bakery was created in

2012. It is Manila’s cupcake wonderland. It offers

a wide variety of cupcake flavors and an

ambiance worthy of your Instagram,Ttwitter and

Facebook - the go-to haven of every sweet tooth.

It has five (5) branches located at Glorietta 3, Glorietta 4, Alabang Town

center, Trinoma mall, and UP Town Center.

A Business Plan 32

Page 28: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Twelve Cupcakes

Twelve Cupcakes opened its

doors in July 2011 in Singapore and

has grown rapidly with overwhelming

response from its passionate

customers. The strong following is due to the brand promise to deliver only

freshly baked cupcakes that are handmade from scratch every day.

Coupled with the use of quality gourmet ingredients, Twelve Cupcakes

does not cut corners in creating the perfect cupcake for the Asian palate.

A Twelve Cupcakes' Cupcake is moist, fluffy and less sweet and

has a light smooth frosting that tantalizes the palate. Many satisfy their

sweet-tooth cravings with these elegant-looking treats that are housed in

their signature pink boxes. It is perfect for gatherings or just to give your

day a sweet ending. It has four (4) branches located SM City BF, Century

City mall, Lucky Chinatown Mall, and SM Mall of Asia.

Indirect Competitors

Conti’s Bakeshop & Restaurant

Since opening its doors

to families and friends in

Parañaque in 1997, Conti's

Bakeshop and Restaurant has

A Business Plan 33

Page 29: Singing Sweets Haus Business Plan

Singing Sweets’ Hauscreated and shared memories of togetherness to people who have come

to love our wide selection of products, including our signature dishes such

as the Baked Salmon, Chicken Pie, and the well-loved Mango Bravo. It

has fourteen (14) branches located at Alabang Town Center, Westgate

Mall Alabang, Bluebay Walk Pasay, Greenhills, Greenbelt 2, Nuvali,

Robinsons Magnolia, BF Homes Parañaque, Serendra, Katipunan, Shaw

Boulevard, SM Mall of Asia, Trinoma Mall, and SM Megamall.

Red Ribbon Bakeshop

Red Ribbon Bakeshop

started in 1979 in Timog,

Quezon City. Red Ribbon has

grown to over 270 outlets all over the Philippines and over 30 stores in US

with locations in California, Nevada, Washington, Hawaii, New York, New

Jersey and Virginia. With its acquisition in October 2005 by Jollibee Foods

Corporation, Red Ribbon entered a new phase in its company history. The

company soon became one of the biggest and fastest growing bakeshops

in the Philippines and has taken part in every Filipino’s special moments. It

provides baking cakes. Its products include choco mallows, choco mocha

crunch, chocolate cakes, chocolate mousse, chocolate torte, coffee

crunch, cookies and crème, mango cakes, mango cream pie, mocha

cakes, rocky road cakes, sans rival, truffle cakes, ube cakes, blueberry

cheesecakes, ube macapuno cakes, santa cakes, fruit cakes, birthday

cakes, and wedding cakes.

A Business Plan 34

Page 30: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Goldilocks Bakeshop

Goldilocks

Bakeshop is a

bakeshop chain

based in the Philippines, which produces and distributes Philippine cakes

and pastries. The chain was named after Goldilocks, a character from the

fairy tale Goldilocks and the Three Bears. It was first opened in 1966 as a

family business and started in a one-door apartment of a two-story

structure on Pasong Tamo Street, Makati City. It has established 192

branches throughout the islands. According to a 2011 study by Taylor

Nelson Sofres Philippines, Goldilocks enjoys a total product awareness of

100 percent. More impressively, Goldilocks has managed a full conversion

of awareness-to-trial, and has done exceedingly well in retaining trial to

regular purchase. It enjoys a committed customer base, and continues to

attract even more

Angel N Kiss Bakery

Angel N Kiss Bakery is a new

bakery cafe's first venture in Asia, which

aims to bring an exciting new twist to the

other existing bakery cafe in the

Philippines. It offers a wide array of sinfully good cakes, pastries, burgers

A Business Plan 35

Page 31: Singing Sweets Haus Business Plan

Singing Sweets’ Hausand breads. Also in the menu are coffee and cold drink concoctions with

distinct Korean taste and flavor.

It is a two-floored building with an art deco charm evidently shown

throughout its wall design. A splash of black tiles with an edgy feels to it.

Even the tables and chairs at the second floor speak of distinctiveness, an

out of this world, and an out of the ordinary sense for aesthetics. The price

is very affordable for a food joint that has so much potential and class. The

bestseller cakes are priced to just over P700. The choices are delish both

to the eyes and taste buds. The service is good and the crews are superb

in what they do.

Dairy Queen

Dairy Queen is a

chain of soft serve ice cream and

fast food restaurants owned and

operated by the Araneta Group. It

serves a variety of frozen products, such as soft serve ice cream. The

Dairy Queen experience makes you always come back for more, and his

is the reason behind their sweet success story uniquely its own.

There are already some businesses that have a firm hold in the

market place. The management grouped the competitors into two: direct

and indirect competitors. The direct competitors are one, which offers the

same products or services. It includes the following business: Cupcakes

by Sonja, Vanilla Cupcake Bakery, and Twelve Cupcakes. As for the

A Business Plan 36

Page 32: Singing Sweets Haus Business Plan

Singing Sweets’ Hausindirect competitors, these are the companies who offer other products or

services that can be substituted for our product. It includes the following

business: Goldilocks Bakeshop, Red Ribbon Bakeshop, Dairy Queen,

Angel N Kiss, and Conti’s Bakery & Restaurant.

These businesses will not be much of a competition because as a

matter of fact the business will be far more victorious than the competitors

since these can only be alternatives for our products and services.

Competition with other bakeries surrounding Singing Sweets’ Haus will

encourage the management to stay true to our business. The company

will be much different by providing both a comfortable and fun

environment as well as presenting cupcakes that will certainly please all of

our customers. It will decorate the cakes and cupcakes with great deals of

time unlike other cupcake businesses in Metro Manila

G. SWOT Analysis

Singing Sweets’ Haus has both internal and external factors, which affect

its ability to operate. Those factors are presented through elaborating the

strengths, weaknesses, opportunities and threats the company have.

Strengths

Passion will be present in creating cakes and other products.

A hundred percent satisfaction will be delivered to the customers.

Quality control will be implemented.

Target market will be all demographics.

Unique products will be catered.

A Business Plan 37

Page 33: Singing Sweets Haus Business Plan

Singing Sweets’ Haus Presentation of cakes and pastry will be new and different that will

give product differentiation.

Location of the bakery will be accessible and there will be many

people around the location.

Staffs with experiences will be hired to provide quality service and

products.

Ambience of place will be really good.

Weaknesses

Bakery products are perishable items hence needs to be sold as

soon as possible to gain maximum benefit.

Bakery items will be limited.

Lack of experience and funds will be hindrances in operating in

marketing the business.

Healthy living people will not be attracted to our products.

Opportunities

Social networking sites like Facebook, Twitter and Instagram will

enable advertisement.

Expansion of product line will enlarge the business in the future.

Growing market will trigger more probable customers.

Threats

Competition will be a barrier in entering the market.

The consumers might not easily accept new products in the market.

Price wars may be present.

A Business Plan 38

Page 34: Singing Sweets Haus Business Plan

Singing Sweets’ Haus Product substitution might limit sales.

CHAPTER IV

FINANCIAL PROFILE

The six (6) partners will contribute P 250,000 each to provide for the

amount of capital needed to start the business. This amount will serve as the

initial funding for the company's pre-operating and operating expenses as well as

the purchasing of all the necessary materials and equipment to start the

business.

A. Total Project Cost

For the First Month of Operations

A Business Plan 39

Page 35: Singing Sweets Haus Business Plan

Singing Sweets’ HausOperating Expenses

Supplies Expense

Utilities Expense

Rent Expense

Salary Expense

Product Cost - based on the projected unit sales

Pre-operating Expenses

Fixed Assets

Outright Expenses

Marketing Expenses

TOTAL:

450.00

4,000.00

15,000.00

26,400.00

105,820.83

58,670.00

971,000.00

2,000.00

500,000.00

1,683,340.83

Table 6: Total Project Cost

Table 6 shows all the projected expenses of the business for the

first month of operations to determine how much money they are going to

invest to start the business. Based on the projected expenses of P1, 683,

340.83 , the partners have agreed to invest P250, 000 each to have a total

initial investment of 1,800,000.

B. Pre-Operating Expenses

BUSINESS REQUIREMENTS:

SEC Registration 4,670.00

Mayor's Permit 1,400.00

Business License 2,500.00

Barangay Clearance 1,500.00

A Business Plan 40

Page 36: Singing Sweets Haus Business Plan

Singing Sweets’ HausBIR 3,600.00

Contract Cost (Electronics Company) 20,000.00

Opening 10,000.00

Promotions 5,000.00

TOTAL: 48,670.00

Table 7: Pre-Operating Expenses

C. Fixed Assets For Operations

PARTICULARS QUANTITY UNIT COST TOTAL

Computer 2 20,000.00 40,000.00

Printer 1 5,000.00 5,000.00

Telephone 1 3,000.00 3,000.00

Tables 4 2,000.00 8,000.00

Chairs 20 250.00 5,000.00

Air-conditioning 2 35,000.00 70,000.00

Building/Shop 1 750,000.00 750,000.00

A Business Plan 41

Page 37: Singing Sweets Haus Business Plan

Singing Sweets’ HausMixer 2 25,000.00 50,000.00

Oven 2 20,000.00 40,000.00

TOTAL: 971,000.00

Table 8: Fixed Assets for Operations

Table 8 shows all the fixed assets or the Property, Plant and

Equipment of the Singing Sweets Haus to start its operations. The business

will have a customized building/shop of which it has the greatest cost for the

fixed assets. The total Fixed Assets are depreciated based on their number of

years of useful life.

D. Outright Expenses For Operations

PARTICULARS QUANTITY UNIT COST TOTAL

Flyers 750 2.00 1,500.00

Brochures 5 100.00 500.00

TOTAL: 2,000.00

Table 9: Outright Expenses for Operations

Table 9 shows the other expenses that may be considered also as

miscellaneous expenses. These are the printing expenses for the flyers and

A Business Plan 42

Page 38: Singing Sweets Haus Business Plan

Singing Sweets’ Hausbrochures that will be distributed to the customers as a part of the marketing

strategy of the business.

CHAPTER V

MARKETING STRATEGIES

A. Service Strategy

Singing Sweets’ Haus will ensure customer satisfaction. The business will

promote devotion to customer satisfaction through the company’s website,

printed ads, and other advertisements. The employees will be trained to acquire

the appropriate skills, information as well as the supervisory support to achieve

and maintain customer satisfaction. The employees will easily resolve customer’s

A Business Plan 43

Page 39: Singing Sweets Haus Business Plan

Singing Sweets’ Hausproblem quickly and courteously. As a result, the business will have a good

impression to the customers in terms of customer service. Lastly, the business

will listen to customer’s feedback. Understanding flaws can help the company

assess the customers’ satisfaction and likelihood in availing the business’s

products and services.

B. Promotion Strategy

Signs: Signboards will enable people to know that Singing Sweets’ Haus

is open for business. It will give way to increase potential customers. A tall, free-

standing sign will be placed outside the business’ location, where customers will

be aware of the special products and new items the business has whenever

customers would pass by the bakery. This sign will be changed by the business

every time they will have new offerings. Through the signboards, people will

know what the shop is and what it has to offer.

Social Media: Singing Sweets’ Haus can get a mouth-watering and

positive reaction if social media sites such as Facebook or Twitter are to be used

to promote the shop. A store account must be set up, and messages must be

regularly checked in order to interact with the potential customers. Photos must

be posted including the testimonials from satisfied customer as well as

information on promos, and ideas in using the products. Netizens will be curious

on what the shop has to offer. Since the business offers a unique product and

experience, many people will talk about it. Thus, making the business

commercially successful. Advertising bakery products on holidays, and offering

special discounts during the slow season can pump up the business.

A Business Plan 44

Page 40: Singing Sweets Haus Business Plan

Singing Sweets’ HausFlyers: A flyer can give a glimpse on how creative the company is. Flyers

must stand out and highlight the main message of the company. It will be given

to potential customers to promote the bakery.

Events: Local fairs can give opportunities to showcase the products and

services of the company. Free samples will be given so that potential customers

can taste what the business has to offer. In every products that the business will

sell, a tag must be included containing the contact information and address of

Singing Sweets’ Haus.

C. Location Strategy

The business will be strategically located at Blue Bay Walk, Metropolitan

Park EDSA Ext, Pasay City. This will serve as one of the best location for Sweets

Singer Haus as it attracts a lot of young college adults as well as employees from

companies around. The accessibility of the location is ensured to its target

market since it has great curb appeal and people will be more likely to stop by

and come in.

D. Brochure

A Business Plan 45

Page 41: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Figure 6: Brochure of Singing Sweets’ Haus

Figure 6 shows the brochure of the company. The brochure contains the

available products the company is offering. It also includes the location as well as

the business layout of Singing Sweets’ Haus.

A Business Plan 46

Page 42: Singing Sweets Haus Business Plan

Singing Sweets’ HausE. Streamer

Figure 7: Streamer of the Singing Sweets’ Haus

Figure 7 shows the Singing Sweets’ Haus’s main signage which is fixed to

the upper wall of every public information bulletin. In addition, it will also be

visible outside the store's premises. As what the business is telling, the streamer

looks like a cupcake patterned from the main product. The logo and the tagline is

place at the center of the main building so that it will be seen clearly and directly.

The main layout can be seen at the blueprint, figure 9. No need to explain the

main layout of the building.

F. Location Layout

A Business Plan 47

Page 43: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

Figure 8: Vicinity Map of Singing Sweets’ Haus

A Business Plan

Singing Sweets’ Haus

48

Page 44: Singing Sweets Haus Business Plan

Singing Sweets’ HausFigure 8 shows the vicinity map of Singing Sweets’ Haus, which is located

at the Bluebay Walk, Pres. Diosdado Macapagal Blvd. EDSA, Pasay City. This

map shows the different establishments that can be seen around Bluebay Walk

where the business will be located. The location of the company is almost the

nest of every hotel, Institutional school, church, industrial parks, business parks

and retail. That is why the target location of the business of the company is

located in Bluebay Walk because of the great percentage of customer or buyers.

A Business Plan 49

Page 45: Singing Sweets Haus Business Plan

Singing Sweets’ HausG. Business Layout

A Business Plan

Figure 9: Business Layout (top view, ground floor)

50

Page 46: Singing Sweets Haus Business Plan

Singing Sweets’ HausFigure 9 shows the business layout of Singing Sweets’ Haus as seen on

the top view projection. The blueprint shows that there are two parts of the

building: the first one is the inside layout, and the second one is the outside

layout. The inside layout is composed of the following: double doors, tables and

chairs, counters, and the main storage of the baked goods. This is the part where

buyers can choose, order, and eat. Since the business will be installing an air

conditioning system, customers can choose if eating inside will be satisfactory

due to the cold atmosphere.

The outside layout is composed of the following: tables, chairs and the

single exit door. This is the part with an open air. The business is expecting that

there will be smoking customers who will want to sit outside. As a result, the

business will place an outside area where the smoking customers can sit and

relax. Customers can smoke, chitchat, and eat outside as long as they exercise

good manner and right conduct towards other customers of the business. The

layout of the business is patterned from the structure of a cupcake. The building

will be shaped like a cupcake copied after the main product of the company,

which is the singing cupcake.

A Business Plan 51

Page 47: Singing Sweets Haus Business Plan

Singing Sweets’ HausH. Gantt Chart

A Business Plan

Table 10: Gantt Chart

52

Page 48: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER VI

PROVISIONS FOR EXPANSION

To cope with the rapid emergence of the cake and cupcake industry, the

company have come up to the following provisions for expansion to maintain its

strong relationship with its valued clientele and with hope of encouraging more

clients as it provides innovative ways of serving them.

Expand the business outside the vicinity of Pasay City. This includes

having a branch located in Makati City and Taguig City, for these areas

have massive technological innovation and is the centre of industries and

huge basin of schools and work establishments enough for the company’s

new innovations to make it accessible and positively through the potential

market.

Expand the business outside the Philippines and make it successfully to

the global market.

Provide another product line for the customers to enjoy and crave.

Cater to parties or events to broaden connection with customers and other

business industries.

Provide delivery option for customers in purchasing Singing Sweets’ Haus.

Handle a number of increasing clients by hiring more employees.

A Business Plan 53

Page 49: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER VII

CONCLUSION

Based on the research and study, the researchers therefore conclude

that the business is feasible and viable in the market. Once the industry was

understood, the feasibility of Singing Sweets’ Haus was analyzed. By examining

local statistics such as market size, customer demographics, and competition,

multiple strategies were developed pertaining to marketing, sales, pricing, and

operations. The opening of a custom cake and cupcake shop in Blue Bay

Walk, Metropolitan Park EDSA Ext, Pasay will be profitable, successful and

may lead to future expansion for the company. As a result, Singing Sweets’

Haus has the potential to become the premiere cupcake destination in the

Philippines.

A Business Plan 54

Page 50: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER VIII

RECOMMENDATION

Singing Sweets' Haus is a new business in the Philippines particularly in

Pasay. The company needs to focus in the following aspects:

Strengthening the promotional strategies of the business to make

customers aware about the company’s products and services.

Creating a marketing strategy that is efficient and also effective.

Developing the company’s image to make customers accustom to the

products and services it has to offer.

A Business Plan 55

Page 51: Singing Sweets Haus Business Plan

Singing Sweets’ HausCHAPTER IX

APPENDICES

A. Projected Financial Performance

SINGING SWEETS’ HAUS

SALES FORECAST

PARTICULARS Year 1 Year 2 Year 3

POTENTIAL

MARKET SIZE

PER YEAR

Birthday 6,000 6,300 6,615

Wedding 300 315 331

Anniversary 5,000 5,250 5,513

Graduation 16,000 16,800 17,640

Monthsary

(teens)8,000 8,400 8,820

Christmas 20,000 21,000 22,050

New Year 20,000 21,000 22,050

Valentines 15,000 15,750 16,538

Other

Occasions20,000 21,000 22,050

MARKET SHARE 25% 30% 35%

NO OF

CUSTOMERS

PER YEAR

Birthday 1,500 1,890 2,315

Wedding 75 95 116

Anniversary 1,250 1,575 1,929

Graduation 4,000 5,040 6,174

A Business Plan 56

Page 52: Singing Sweets Haus Business Plan

Singing Sweets’ HausMonthsary

(teens)2,000 2,520 3,087

Christmas 5,000 6,300 7,718

New Year 5,000 6,300 7,718

Valentines 3,750 4,725 5,788

Other

Occasions5,000 6,300 7,718

SALES PER

MONTH

Birthday 12,500.00 15,750.00 19,294.00

Wedding 625.00 788.00 965.00

Anniversary 10,417.00 13,125.00 16,078.00

Graduation 33,333.00 42,000.00 51,450.00

Monthsary

(teens)16,667.00 21,000.00 25,725.00

Christmas 41,667.00 52,500.00 64,313.00

New Year 41,667.00 52,500.00 64,313.00

Valentines 31,250.00 39,375.00 48,234.00

Other

Occasions41,667.00 52,500.00 64,313.00

SALES PER

YEAR

Birthday 150,000.00 189,000.00 231,525.00

Wedding 7,500.00 9,450.00 11,576.00

Anniversary 125,000.00 157,500.00 192,938.00

Graduation 400,000.00 504,000.00 617,400.00

Monthsary 200,000.00 252,000.00 308,700.00

A Business Plan 57

Page 53: Singing Sweets Haus Business Plan

Singing Sweets’ Haus(teens)

Christmas 500,000.00 630,000.00 771,750.00

New Year 500,000.00 630,000.00 771,750.00

Valentines 375,000.00 472,500.00 578,813.00

Other

Occasions500,000.00 630,000.00 771,750.00

Total Sales Per Year2,757,500.0

03,474,450.00 4,256,202.00

Table 11: Sales Forecast

Assumptions:

1. There will be a 5% increase in the potential market per year based from the

average increase of celebrators per year for 3 consecutive years on the

basis of the original market size.

2. There will be a 5% increase in the market share per year based from the

average increase of celebrators per year for 3 consecutive years on the

basis of the original market size.

3. Sales per year will increase by 5%.

A Business Plan 58

Page 54: Singing Sweets Haus Business Plan

Singing Sweets’ HausSINGING SWEETS’ HAUS

PROJECTED EXPENSES

A Business Plan 59

Page 55: Singing Sweets Haus Business Plan

Singing Sweets’ HausPARTICULARS Year 1 Year 2 Year 3

Supplies

Coupon Bond-Short

(5 reams) 5 x 120

600 630 662

Printer-Ink (Cyan,

Magenta, Yellow &

Black ) 24 x 200

4,800.00 5,040.00 5,292.00

TOTAL 5,400.00 5,670.00 5,954.00

Utilities

Lights -

1,500/month

30,000.00 31,500.00 33,075.00

Water- 1,500/month 18,000.00 18,900.00 19,845.00

Telephone-1000/

month

12,000.00 12,600.00 13,230.00

TOTAL 60,000.00 63,000.00 66,150.00

Depreciation Computer

(40,000-5000)/5

yrs.

7,000.00 7,000.00 7,000.00

Printer- 5,000/10

yrs.500.00 500.00 500.00

Telephone-3,000/5

yrs.600.00 600.00 600.00

Tables- 8,000/4 yrs. 2,000.00 2,000.00 2,000.00

Chairs- 5,000/4 yrs. 1,250.00 1,250.00 1,250.00

Aircondition- 14,000.00 14,000.00 14,000.00

A Business Plan 60

Page 56: Singing Sweets Haus Business Plan

Singing Sweets’ Haus70,000/5 yrs.

Building-

750,000/25 yrs.30,000.00 30,000.00 30,000.00

TOTAL 55,350.00 55,350.00 55,350.00

Salaries And

Wages

Service Crew (2)

13,200/month158,400.00 166,320.00 174,636.00

Cleaning and

Maintenance Staff

13,200/month

158,400.00 166,320.00 174,636.00

TOTAL 316,800.00 332,640.00 349,272.00

Rent

Expense15,000/month 180,000.00 189,000.00 198,450.00

Outright

Expenses2,000/month 24,000.00 25,200.00 26,460.00

Pre-Operating Expenses 58,670.00 0.00 0.00

Marketing Expenses 500,000.00 0.00 0.00

Repairs And Maintenance 0.00 30,000.00 36,000.00

Cost of

Good Sold

based on the

projected

Raw Materials

27, 575 x 38

1,047,850.00 1,100,243.00 1,155,255.00

Salary (2 Pastry

Chefs)

396,000.00 415,800.00 436,590.00

A Business Plan 61

Page 57: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

unit sales

16,500 x 12

Utilities (Gas)

2,000 x 12

24,000.00 25,200.00 26,460.00

Oven Toaster

50,000/10 yrs.

5,000.00 5,000.00 5,000.00

Mixer

40,000/ 10 yrs.

4,000.00 4,000.00 4,000.00

TOTAL 1,476,850.00 1,550,243.00 1,627,305.00

Total Projected Expenses 2,677,070.00 2,251,103.00 2,364,941.00

Table 12: Projected Expenses

Note:

Supplies expenses will increase by 5% per year.

Utilities expenses will increase by 5% per year.

Salaries and Wages will increase by 5% per year.

Rent Expense will increase by 5% each year.

Repairs and Maintenance will increase by 20% each year.

Outright Expenses will increase by 5% each year.

Raw Material Prices for the products will increase by 5% each year.

SINGING SWEETS’ HAUS

PROJECTED STATEMENT OF FINANCIAL PERFORMANCE

A Business Plan 62

Page 58: Singing Sweets Haus Business Plan

Singing Sweets’ HausYear 1 Year 2 Year 3

PROJECTED REVENUE 2,757,500.00 3,474,450.00 4,256,202.00

PROJECTED EXPENSES

Supplies 5,400.00 5,670.00 5,954.00

Utilities 60,000.00 63,000.00 66,150.00

Depreciation 55,350.00 55,350.00 55,350.00

Salaries and Wages 316,800.00 332,640.00 349,272.00

Rent Expense 180,000.00 189,000.00 198,450.00

Outright Expenses 24,000.00 25,200.00 26,460.00

Pre-operating Expenses 58,670.00 0 0

Marketing Expenses 500,000.00 0 0

Product Cost - based on

the projected unit sales 1,476,850.00 1,550,692.50 1,627,305.00

Repairs and Maintenance 0 30,000.00 36,000.00

TOTAL PROJECTED EXPENSES 2,677,070.00 2,251,103.00 2,446,306.25

TOTAL PROJECTED INCOME

BEFORE TAX 80,430.00 1,222,897.50 1,891,261.00

INCOME TAX (32%) 25,737.60 391,327.20 605,203.52

PROJECTED NET INCOME 54,692.40 831,570.30 1,286,057.48

Table 13: Projected Statement of Financial Performance

Table 13 shows the total projected Net Income of Singing Sweets’ Haus

for three consecutive years. The projected expenses are deducted from the

total projected revenue to get the Gross Income. A 32 % tax based on the gross

A Business Plan 63

Page 59: Singing Sweets Haus Business Plan

Singing Sweets’ HausIncome will also be deducted to get the total projected net income of the

business.

SINGING SWEETS’ HAUS

PROJECTED STATEMENT OF CASH FLOWS

Year 1 Year 2 Year 3

Cash Flows Cash Receipts:

A Business Plan 64

Page 60: Singing Sweets Haus Business Plan

Singing Sweets’ HausFrom

Operating

Activities:

Sales 2,757,500.003,474,450.0

04,256,202.00

Cash Payments:

Supplies

purchased5,400.00 5,670.00 5,954.00

Utilities 60,000.00 63,000.00 66,150.00

Salaries and

Wages316,800.00 332,640.00 349,272.00

Rent Expense 180,000.00 189,000.00 198,450.00

Outright Expenses 24,000.00 25,200.00 26,460.00

Pre-operating

Expenses58,670.00 0.00 0.00

Product Cost 1,467,850.001,541,692.5

01,618,305.00

Marketing

Expenses500,000.00 0.00 0.00

Repairs and

Maintenance0.00 30,000.00 36,000.00

Income Tax Paid 25,737.60 391,327.20 605,203.52

Total: 2,638,457.602,578,529.7

02,905,794.52

Net Cash Flows

from Operating

119,042.40 895,920.30 1,350,407.48

A Business Plan 65

Page 61: Singing Sweets Haus Business Plan

Singing Sweets’ HausActivities

Cash Flows

From

Investing

Activities:

Cash Outflows

Purchased Fixed

Assets(971,000.00) 0.00 0.00

Cash Flows

From

Financing

Activities:

Cash Inflows:

J. Villanueva,

Capital250,000.00 0.00 0.00

N. Conlu, Capital 250,000.00 0.00 0.00

V. Pablo, Capital 250,000.00 0.00 0.00

J. Enolva, Capital 250,000.00 0.00 0.00

A. Zafra, Capital 250,000.00 0.00 0.00

S. Derogongan,

Capital250,000.00 0.00 0.00

Cash Flows from

Financing

Activities

1,500,000.00 0.00 0.00

NET CASH INFLOWS 648,042.40 895,920.30 1,350,407.48

Add: Cash Beginning 0.00 648,042.40 1,543,962.70

Cash: Ending 648,042.401,543,962.7

02,894,370.18

Table 14: Projected Statement of Cash Flows

A Business Plan 66

Page 62: Singing Sweets Haus Business Plan

Singing Sweets’ HausTable 14 shows the cash inflows and outflows based on operating,

investing and financing activities of Singing Sweets’ Haus. Based on the

information, the business increases its cash on its operating activities. The first

year of low ending cash balance is affected because of the Property, Plant and

Equipment purchases and payments for Marketing Expenditures. Second and

Third year ending cash balances are very large in comparison to the first year

ending balance because there are no purchases that has occurred.

A Business Plan 67

Page 63: Singing Sweets Haus Business Plan

Singing Sweets’ HausSINGING SWEETS’ HAUS

PROJECTED STATEMENT OF FINANCIAL POSITION

Year 1 Year 2 Year 3

ASSETS

Current Assets

Cash

Non-Current Assets

Computer

Printer

Telephone

Tables

Chairs

Air-conditioning unit

Building/Shop

Mixer

Oven

Total Non-Current Assets

648,042.40 1,543,962.70 2,894,370.18

33,000.00 26,000.00 19,000.00

4,500.00 4,000.00 3,500.00

2,400.00 1,800.00 1,200.00

6,000.00 4,000.00 2,000.00

3,750.00 2,500.00 1,250.00

56,000.00 42,000.00 28,000.00

720,000.00 690,000.00 660,000.00

45,000.00 40,000.00 35,000.00

36,000.00 32,000.00 28,000.00

906,650.00 842,300.00 777,950.00

TOTAL ASSETS 1,554,692.4

02,386,262.70 3,672,320.18

LIABILITIES AND EQUITY

A Business Plan 68

Page 64: Singing Sweets Haus Business Plan

Singing Sweets’ HausCapital, Beginning 1,500,000.0

0

1,554,692.40 2,386,262.70

Add: Net Income 54,692.40 831,570.30 1,286,057.48

Total Capital 1,554,692.4

0

2,386,262.70 3,672,320.18

TOTAL Liabilities and

Owner's Equity

1,554,692.4

02,386,262.70 3,672,320.18

Table 15: Projected Statement of Financial Position

Table 15 shows the ending assets, liabilities and Owner’s Equity of the

business. It is the classified summary balances on the ledger accounts of

Singing Sweets’ Haus after the nominal accounts have been closed off. Capital

Increases are results of the operations of the business. As shown in the table,

no liabilities has been incurred by the business since their initial investment has

been maximized based on the sales each year.

A Business Plan 69

Page 65: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

B. Financial Analysis

RETURN ON TOTAL ASSETS

Year 1 Year 2 Year 3

Net Income 54,692.40 831,570.30 1,286,057.48

Assets 1,554,692.40 2,386,262.70 3,672,320.18

ROA 3.52 % 34.85 % 35.02 %

Table 16: Return on Total Assets

Return on total assets measures the operating performance of

Singing Sweets’ Haus where Net Income is divided by the Average total

Assets.

Based on the total percentages computed in year 1, year 2 and year

3, the company has earned a return on average total assets employed over

each year of 3.52 %, 34.85%, and 35.02% respectively.

This also means that for every peso of asset that the company

employed over each year has a return of P3.52, 34.85, and 35.02

respectively.

A Business Plan 70

Page 66: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

RETURN ON EQUITY

Year 1 Year 2 Year 3

Net Income 54,692

.40831,570.3

0 1,286,057.48

Investments 500,000.00 500,000.00

500,000.00

ROA 10.93% 166.31% 257.21%

Table 17: Return on Equity

Return on to Equity measures how much a company makes for each

peso the owners or partners have invested.

Based on the total percentages computed in year 1, year 2 and year 3,

Singing Sweets’ Haus has earned a return on equity employed over each

year of 10.93%, 166.31%, and 257.21% respectively.

This also means that for every peso of equity that the company

employed over each year has a return of 10.93, 166.31, and 257.21

respectively.

A Business Plan 71

Page 67: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

GROSS MARGIN RATIO/GROSS PROFIT PERCENTAGE

Year 1 Year 2 Year 3

Net Sales 2,757,500.00 3,474,450.00 4,256,202.00

Cost of Goods Sold 1,476,850.00 1,550,692.50 1,627,305.00

Gross Profit 1,280,650.00 1,923,757.50 2,628,897.00

Gross Margin Ratio (Based on Sales)

46.44% 55.36% 61.76%

Table 18: Gross Margin Ratio

This shows the computation of the gross profit from selling of Singing

Sweets’ products without taking into account the expenses of selling or the

expense of financing and administering the enterprise.

The Gross Margin Ratio, which is computed by dividing the Gross Profit

from the Net Sales. This means that for every unit of the company’s’ product,

the increase in the amount sold for each which is based on the Net Sales is

46.44%.

A Business Plan 72

Page 68: Singing Sweets Haus Business Plan

Singing Sweets’ Haus

C.References

Buffet W. (2003). “Dairy Queen.” https://en.wikipedia.org/wiki/Dairy_Queen

(accessed September 19, 2015)

Caktiong T. (2006). “Goldilocks Bakeshop.”

https://en.wikipedia.org/wiki/Goldilocks_Bakeshop (accessed September 19,

2015)

Martinez A. (2008). “Conti's Pastry Shop & Restaurant.”

http://www.foodreviewsmanila.com/2008/07/reviews-contis-pastry-shop-

restaurant.html (accessed September 19, 2015)

Mercado R. (2006). “Red Ribbon Bakeshop.”

https://en.wikipedia.org/wiki/Red_Ribbon_(bakeshop) (accessed September

19, 2015)

Perez J. (2014). “Vanilla Cupcake Bakery.”

http://www.jinlovestoeat.com/2014/02/vanilla-cupcake-bakery.html (accessed

September 19 2015)

Rodeles O. (2014). “Angel N' Kiss.”

http://ofelrodeles.blogspot.com/%202014/06/%20angel-n-kiss-bakery-cafe-

korean-way.html (accessed September 19, 2015)

Teo D. (2014). “Twelve Cupcakes.”

https://en.wikipedia.org/wiki/Twelve_Cupcakes (accessed September 19

2015)

A Business Plan 73